Parkland Fuel to buy rival Pioneer Energy

Red Deer, Alberta — Parkland Fuel Corporation has announced that it will buy rival Pioneer Energy for $378M. On September 17th, the North America's fastest growing distributor and marketer of fuels and lubricants, entered into a definitive agreement to acquire the assets of Pioneer Energy.

Assets of Pioneer will be purchased for $378 million. This includes $259 million in cash, $119 million in common shares of Parkland, and the assumption of standard operating liabilities. The deal is subject to the satisfaction of closing conditions and closing adjustments.

At 6.9 times Pioneer’s trailing twelve month EBITDA of approximately $55 million, this acquisition is both accretive and attractively priced for a premier retail fuel network.

Pioneer’s is jointly owned by The Pioneer Group Inc. and Suncor Energy Inc., both of which will receive considerations.

“We have long recognized the Ontario retail marketplace as a critical growth opportunity for Parkland, aligning with Parkland’s overarching supply strategy. We also recognize Pioneer Energy as one of Canada’s most respected independent retail fuel marketers, having built Pioneer into the strongest independent retail fuel brand in Ontario. Given the Pioneer Group’s sophisticated understanding of the retail fuel industry, their investment in Parkland is a strong endorsement of our strategy, and we look forward to welcoming their team,” said Bob Espey, President and Chief Executive Officer of Parkland.

“Our five year growth plan has progressed rapidly as a result of our team’s ability to identify and execute disciplined transactions. We continue to anticipate additional accretive acquisitions, adhering to our disciplined approach to growth.”

Including the Acquisition, since 2011 Parkland has successfully added six billion litres in petroleum volume, $115 million in annualized EBITDA through acquisitions and their associated synergies, and $11 million from the Give me Five! initiative. With the Acquisition, Parkland is expected to attain its goal to add $125 million in additional Adjusted EBITDA by 2015, a full year earlier than expected.

SOURCE Parkland Fuel Corporation